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Difficulty: EasyEstimating GCP Costs with the Pricing Calculator

A cloud engineer is using the Google Cloud Pricing Calculator to estimate monthly Compute Engine expenses for a single virtual machine instance. The instance has an un-discounted rate of $0.04\$0.04 per hour. If the instance runs continuously for 730730 hours during a month and qualifies for a 20%20\% sustained use discount on its compute costs, what is the net estimated monthly cost of the instance in USD?

Answer: 23.36 USD

Answer

The net estimated monthly cost of the instance is $23.36\$23.36.
To estimate the total monthly cost, multiply the hourly rate of $0.04\$0.04 by 730730 hours to determine the gross monthly cost of $29.20\$29.20. Applying the 20%20\% sustained use discount reduces the total cost by $5.84\$5.84 ($29.20×0.20\$29.20 \times 0.20), resulting in a net monthly estimate of $23.36\$23.36.

Step-by-Step Solution

1
Calculate total gross monthly cost prior to discounts.
$29.20\$29.20
Multiply the hourly rate ($0.04\$0.04) by the number of continuous operational hours (730730).
2
Apply the 20%20\% sustained use discount factor.
$23.36\$23.36
Multiply the gross cost by 0.800.80 to account for a 20%20\% reduction.

Key Concept

Estimating Compute Engine continuous usage costs with sustained use discounts
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Topics

Estimating GCP Costs with the Pricing Calculator

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